Diesel Engine Strategy &Diesel Engine Strategy &North American MarketNorth American MarketChallenges, Technology and GrowthChallenges, Technology and Growth

August 13, 2007August 13, 2007DEER 2007DEER 2007Detroit, Mich.Detroit, Mich.

Charles E. Freese V.Charles E. Freese V.Executive Director, Diesel EngineeringExecutive Director, Diesel EngineeringGM PowertrainGM Powertrain

OverviewOverview �� GM’s Energy & Propulsion StrategyGM’s Energy & Propulsion Strategy

�� The Diesel Engine’s Role in Propulsion StrategyThe Diesel Engine’s Role in Propulsion Strategy–– Regional Contrast between Europe & United StatesRegional Contrast between Europe & United States

�� Diesel Challenges & TeDiesel Challenges & T chnologiesechnologies

Answer Question:Answer Question:

Why not put a diesel engine into every vehicle?Why not put a diesel engine into every vehicle?

GM’s Long Term VisionGM’s Long Term VisionRemove the automobile from the energy & environmental equation

Remove the automobile from the energy & environmental equation

Sources: U.S. Census Bureau International Population Database, GM Global Market & Industry Analysis

Transportation is a growth industry!Transportation is a growth industry!

88

66

44

22

00

16%16%

12%12%

10%10%

8%8%

0%0%

Bill

ions

Bill

ions

Perc

ent

Perc

ent

19801980 19901990 20002000 20202020

World PopulationWorld Population Global Vehicle ParcGlobal Vehicle Parc

12%12%15%15%

Global Energy Consumption to 2030Global Energy Consumption to 2030

Oil

� 2006: 85MBD 1,000 barrels/second !

� 2030: 120 MBD projected

� 50% used for transportation

� Transportation is 98% dependent on petroleum

Oil

� 2006: 85MBD 1,000 barrels/second !

� 2030: 120 MBD projected

� 50% used for transportation

� Transportation is 98% dependent on petroleum

Source: DOE-EIA 2006

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

1980 1990 2000 2010 2020 2030

Wor

ld E

nerg

y C

onsu

mpt

ion

(MB

DO

E)

Transportation

Renewables Nuclear Coal Natural Gas Oil

Total coal reservessignificantly larger

Fossil Fuel Resource AlternativesFossil Fuel Resource Alternatives

� Very large reserves from unconventional oil & coal

� Issues: Cost, CO 2 emissions & large energy required to extract

� Very large reserves from unconventional oil & coal

� Issues: Cost, CO 2 emissions & large energy required to extract

Source: Global Insight 2006

Source: Global Insight 2006

BIOFUELSBIOFUELS

Alternate Resources – A Blending Strategy Liquid Fuels / Electricity / Hydrogen as the In-Vehicle Energy Carriers

Alternate Resources – A Blending StrategyLiquid Fuels / Electricity / Hydrogen as the In-Vehicle Energy Carriers

Fuel-Cell ElectricHydrogen

Shift Reaction

Electricity

Heat

Renewables (Solar, Wind, Hydro)

Nuclear

Energy Carrier Propulsion SystemConversion

Elec

trifi

catio

nEl

ectr

ifica

tion

Energy Resource

ICE Hybrid

Conventional ICE: Gasoline / DieselLiquid

Fuels

Petroleum FuelsOil (Conventional)

Oil (Non-Conventional) Synthetic Fuels (XTL)

Syngas CO, H2

Fischer Tropsch

Coal

Natural Gas

1st and 2nd Generation Biofuels

Biomass

Regional Niche Gaseous

Fuels

Crit

ical

Dep

ende

ncy

on B

atte

ry T

echn

olog

y

Plug-In Hybrid ICE

Electric Vehicle

Alternate Resources – A Blending Strategy Liquid Fuels / Electricity / Hydrogen as the In-Vehicle Energy Carriers

Alternate Resources – A Blending StrategyLiquid Fuels / Electricity / Hydrogen as the In-Vehicle Energy Carriers

Fuel-Cell ElectricHydrogen

Shift Reaction

Energy Carrier Propulsion SystemConversionEnergy Resource

Elec

trifi

catio

nEl

ectr

ifica

tion

ICE Hybrid

Conventional ICE: Gasoline / DieselLiquid

Fuels

Petroleum FuelsOil (Conventional)

Oil (Non-Conventional) Synthetic Fuels (XTL)

Syngas CO, H2

Fischer Tropsch

Coal

Natural Gas

1st and 2nd Generation Biofuels

Biomass

Crit

ical

Dep

ende

ncy

on B

atte

ry T

echn

olog

y

Electricity

Heat

Renewables (Solar, Wind, Hydro)

Nuclear

Plug-In Hybrid ICE

Electric Vehicle

GM Advanced Propulsion Technology StrategyGM Advanced Propulsion Technology Strategy

ImprovedVehicle Fuel Economy &Emissions

ReducedPetroleum

Consumption IC Engine andTransmission Improvements

Hybrid ElectricVehicles (incl.Plug-In HEV)

Battery ElectricVehicles

Near-Term Mid-Term Long-Term

Hydrogen FuelCell Vehicles

These technologies will exist simultaneously

These technologies willexist simultaneously

Fuel Infrastructure

Petroleum (Conventional and Alternative Sources)

Bio Fuels (Ethanol E85, Bio-diesel)

Hydrogen Electricity (Conventional & Alternative Sources)

Propulsion Application MapPropulsion Application Map

Dut

yC

ycle

Dut

yC

ycle

Commercial (High Load)Commercial (High Load)

Stop-and-GoStop-and-Go ContinuousContinuousDriveDrive

CycleCycle(City)(City)

ConsumerConsumer

(Highway)(Highway)

(Light load)(Light load)

Dut

yD

uty

Cyc

le

Propulsion Application MapPropulsion Application Map

Cyc

le

Commercial (High Load)Commercial (High Load)

Consumer (Light load)Consumer (Light load)

Drive Cycle

DriveCycle

Stop-and-Go

(City)

Stop-and-Go

(City)

Continuous

(Highway)

Continuous

(Highway)

Commuter CarCity Car(Gas Hybrid)

Over the Road Truck

Non-towing HighwayGas Car & SUV

Diesel HybridBus

Heavy DutyPickup Truck

Diesel Engine ApplicationsDiesel Engine Applications

Plug-in Hybrid

GM Advanced Propulsion Technology StrategyGM Advanced Propulsion Technology Strategy

Improved Vehicle Fuel Economy & Emissions

Reduced Petroleum

Consumption

Fuel Infrastructure

IC Engine andTransmission Improvements

Hybrid ElectricVehicles (incl.Plug-In HEV)

Battery ElectricVehicles

Near-Term Mid-Term Long-Term Petroleum (Conventional and Alternative Sources)

Bio Fuels (Ethanol E85, Bio-diesel)

Hydrogen Electricity (Conventional & Alternative Sources)

Hydrogen FuelCell Vehicles

Conventional Propulsion SystemsConventional Propulsion Systems

Improve fuel efficiency: ¨ Port Deactivation ¨ Variable Valve Timing (VVT) ¨ Direct Injection ¨ Turbocharging ¨ Lean Combustion: HCCI / Stratified

Improve fuel efficiency:¨ Port Deactivation¨ Variable Valve Timing (VVT)¨ Direct Injection¨ Turbocharging¨ Lean Combustion: HCCI / Stratified

GasolineGasoline DieselDiesel

Improve Emissions: ¨ Low-Temperature Combustion ¨ Advanced Air Handling ¨ Model-Based & Closed-Loop Control ¨ Efficient NOX aftertreatment

Improve Emissions:¨ Low-Temperature Combustion¨ Advanced Air Handling¨ Model-Based & Closed-Loop Control¨ Efficient NOX aftertreatment

GM’s Diesel PortfolioGM’s Diesel Portfolio Market PerspectiveMarket Perspective�� GM is committed to developing global diesel solutionsGM is committed to developing global diesel solutions

�� Capacity forCapac over 1.3 million diesels per yearity for over 1.3 million diesels per year

�� Support world markets with products ranging from 1.3L 4-Support world markets with products ranging from 1.3L 4-cylinder diesel engine in Opel Astra to 6.6L V8 Duramaxcylinder diesel engine in Opel Astra to 6.6L V8 Duramax diesel in the U.S. Silverado/Sierradiesel in the U.S. Silverado/Sierra

�� Diesel powertrains satisfy unique vehicDiesel powertrains satisfy unique vehic le requirementse requirementsl –– Utility & large vehiclesUtility & large vehicles–– Diminishing returns when applied to smaller U.S. vehiclesDiminishing returns when applied to smaller U.S. vehicles

�� Significant technologicaSignificant technologic l challenges exist foral challenges exist forlong term light duty North American presenclong term light duty eNorth American presence

– NOX aftertreatment & fuel limitations– NOX aftertreatment & fuel limitations

�� GM is development technologies to addressGM is development technologies to addresschallengeschallenges

-- -

--

GMPT Global Portfolio Diesel EnginesGMPT Global Portfolio Diesel Engines

150 hp / 310 Nm (229 lb-ft150 hp / 310 Nm (229 lb ft)90 hp / 200 Nm (148 lb-ft)90 hp / 200 Nm (148 lb-ft) 125 hp / 280 Nm (207 lb-ft)125 hp / 280 Nm (207 lb ft) 150 hp / 320 Nm (236 lb-ft)150 hp / 320 Nm (236 lb ft)

365 hp / 895 Nm (660 lb-ft)365 hp / 895 Nm (660 lb ft)180 hp / 420 Nm (310 lb-ft)180 hp / 420 Nm (310 lb ft) NEW IN 2009 – EuropeNEW IN 2009 – Europe NEW IN 2009NEW IN 2009

2.0L I-42.0L I-41.3L I-4 CDTi1.3L I-4 CDTi 1.7L I-4 CDTi1.7L I-4 CDTi 1.9L I-4 CDTi1.9L I-4 CDTi

Duramax 6.6L V-8Duramax 6.6L V-83.0L V-6 CDTi3.0L V-6 CDTi

-- -

--

- -

150 hp / 310 Nm (229 lb-ft150 hp / 310 Nm (229 lb ft)90 hp / 200 Nm (148 lb-ft)90 hp / 200 Nm (148 lb-ft) 125 hp / 280 Nm (207 lb-ft)125 hp / 280 Nm (207 lb ft) 150 hp / 320 Nm (236 lb-ft)150 hp / 320 Nm (236 lb ft)

365 hp / 895 Nm (660 lb-ft)365 hp / 895 Nm (660 lb ft)180 hp / 420 Nm (310 lb-ft)180 hp / 420 Nm (310 lb ft) NEW IN 2009 – EuropeNEW IN 2009 – Europe NEW IN 2009NEW IN 2009

2.0L I-42.0L I-41.3L I-4 CDTi1.3L I-4 CDTi 1.7L I-4 CDTi1.7L I-4 CDTi 1.9L I-4 CDTi1.9L I-4 CDTi

Duramax 6.6L V-8Duramax 6.6L V-83.0L V-6 CDTi3.0L V-6 CDTi

GMPT Global Portfolio Diesel EnginesGMPT Global Portfolio Diesel Engines

250 hp / 550 Nm (406 lb-ft)250 hp / 550 Nm (406 lb ft) 310 hp / 704 Nm (520 lb-ft)310 hp / 704 Nm (520 lb ft) 2.9L V-62.9L V-6 Duramax 4.5L V-8Duramax 4.5L V-8

The All-New 2008 CTSThe All-New 2008 CTS

Where to Use Diesels?Where to Use Diesels?�� European light duty vehicles (near 50%)European light duty vehicles (near 50%)�� Heavy duty Class 7 & 8 trucks for cargo haulingHeavy duty Class 7 & 8 trucks for cargo hauling�� Heavy duty diesel hybrid busesHeavy duty diesel hybrid buses�� Asia-PacificAsia-Pacific

–– Korea, India and potentially China are growing marketsKorea, India and potentially China are growing markets–– Strong diesel bias in Korean SUV market (over 90% diesel)Strong diesel bias in Korean SUV market (over 90% diesel)

�� North AmericaNorth America–– First introduced diesel engines in larger vehiclesFirst introduced diesel engines in larger vehicles–– Consumer recovery of additional financial investmentConsumer recovery of additional financial investment–– Utility applicationsUtility applications–– Towing & haulingTowing & hauling

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

CY2000

CY200

1CY2

002

CY200

3CY2

004

CY200

5 CY2

006

CY2007

CY200

8 CY2

009CY2

010CY2

011

CY201

2CY2

013

CY201

4

CSM Forecast

J.D. Power Forecast

Global Insight

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

CY2000

CY200

1CY2

002

CY200

3CY2

004

CY200

5CY2

006

CY2007

CY200

8CY2

009CY2

010CY2

011

CY201

2CY2

013

CY201

4

CSM Forecast

J.D. Power Forecast

l l I i

Calendar YearCalendar

G oba nsght

Year

Diesel Vehicle SalesDiesel Vehicle Sales

Global Diesel Sales Growth Projections Global Diesel SalesGrowth Projections

Why Use Diesels?Why Use Diesels?�� Heavy duty towing & haulingHeavy duty towing & hauling

–– Improved utility & toI wing capabilitiesmproved utility & towing capabilities–– Increased durabilityIncreased durability

�� Satisfy fuel economy improvement objectivesSatisfy fuel economy improvement objectives–– Positive influence on CO2 & CAFEPositive influence on CO2 & CAFE–– Real world fuel economy improvement – a robust solutionReal world fuel economy improvement – a robust solution–– Fuel economy advantage is greater under high loadFuel economy advantage is greater under high load

�� Improve vehicle performance with less displacementImprove vehicle performance with less displacement–– Fun to driveFun to drive

�� Tax incentives in European marketsTax incentives in European markets

••

•

Economic Model Comparison between U.S. & Europe – Diesel Break-Even Economic ModelComparison between U.S. & Europe – Diesel Break-Even

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

0 1,000 2,000 3,000 4,000 5,000 0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

0 1,000 2,000 3,000 4,000 5,000

Vehi

cle

Mile

age

(mile

s)Ve

hicl

e M

ileag

e (m

iles)

Initial Purchase Price ($ U.S.)Initial Purchase Price ($ U.S.)

35 MPG

30 MPG

25 MPG

20 MPG

Gas=15 MPG

Gas=35 MPG 30 25 20 15

Gas=35 MPG30252015

North America Gas=Diesel=$2.50/Gal

North AmericaGas=Diesel=$2.50/Gal

Europe: Gas = $6/Gal

Diesel = $5/Gal

Europe:Gas = $6/Gal

Diesel = $5/Gal

Vehicle Mileage Required to Recover Diesel Engine CostVehicle Mileage Required to Recover Diesel Engine Cost

Chart Assumptions:• 20,000 Annual Vehicle Miles• Diesel Efficiency Advantage:

Europe 30%, Bin 5 North America 25%

• 6% Annual Finance Rate Available

Chart Assumptions:20,000 Annual Veh icle MilesDiesel Efficiency Advantage:

Europe 30%, Bin 5 North America 25%

6% Annual Finance Ra te Available

U.S. Heavy Duty Emissions StandardsU.S. Heavy Duty Emissions Standards

0.100.10

0.050.05

0.010.01

0.000.000.20.2 4400 11 22 33

19981998

2004 (NO2004

X+NMHC)(NOX+NMHC)

2007200720102010

NOXNO (g/hp-hr)X (g/hp-hr)

PM

(g

/hp-

hr)

PM

(g

/hp-

hr)

2007 Duramax 6.6L V8 LMM Engine Base Engine Modifications for Emissions 2007 Duramax 6.6L V8 LMM EngineBase Engine Modifications for Emissions

Major emissions related changes include: � Structural improvements � High pressure fuel system updates � Intake throttle � Higher capacity EGR cooler � Revised cooler circuitry � Extensive engine software

and calibration changes � Diesel Particulate Filter (DPF) � Post injection to support DPF regeneration � Updated internal turbocharger upgrades

Major emissions related changes include:� Structural improvements� High pressure fuel system updates� Intake throttle� Higher capacity EGR cooler� Revised cooler circuitry� Extensive engine software

and calibration changes� Diesel Particulate Filter (DPF)� Post injection to support DPF regeneration� Updated internal turbocharger upgrades

Alternate Cell Plugging Pattern

Alternate CellPlugging Pattern

Porous Cell Wall

Porous Cell Wall

Trapped Diesel Particulate Matter Trapped Diesel Particulate Matter

Diesel Particulate Filter (DPF) FunctionDiesel Particulate Filter (DPF) Function

Global Emissions (Europe vs. U.S. Applications) Light Duty Global Emissions (Europe vs. U.S. Applications)Light Duty

Chevrolet SilveradoChevrolet SilveradoOpel AstraOpel Astra

1.7L I-41.7L I-4 6.6L V-86.6L V-8

Emission = Emission Index X Fuel Consumption (g/mile) (g/kg fuel) (kg fuel/mile)

≠≠

Diesel Advanced Combustion TechnologyDiesel Advanced Combustion Technology Path to Engine-Out NOXPath to Engine-Out NO /PM ReductionX/PM Reduction

CO

SOMixingMixing SOOTOT

COCombusCombusttiooni

ExExpansionpansion NONOXX

1010

88

66 EquivalenceEquivalenceRatio [-]Ratio [-]

44

22

00500500 10001000 15001500 20002000 25002500

Temperature [K]Temperature [K]

NOX (g/mi)NOX (g/mi)

T2 B5T2 B5T2 B5

00

0.010.01

0.020.02

0.030.03

0.040.04

0.050.05

0.060.06

0.070.07

0.080.08

0.090.09

Base Engine & AftertreatmentBase Engine & Aftertreatment

Production DispersionProduction Dispersion

??00 0.10.1 0.20.2 0.30.3 0.40.4 0.50.5 0.60.6 0.70.7 0.80.8 0.90.9

Particulate Matter (g/mi)Particulate Matter (g/mi)

Tier 2 Bin 5 and Production DispersionTier 2 Bin 5 and Production Dispersion

ECUECUECU

Fuel Injectors

FuelFuelInjectorsInjectors

EGREGREGR TurboTurboTurbo

6.6L V-86.6L V-8

Cylinder Pressure Sensor

CylinderPressureSensor

Technologies to Reduce Engine-out Emissions Closed Loop Diesel Combustion Control Technologies to Reduce Engine-out EmissionsClosed Loop Diesel Combustion Control

Technologies to Reduce Engine-out Emissions Closed Loop Diesel Combustion Control Technologies to Reduce Engine-out EmissionsClosed Loop Diesel Combustion Control

TargetFueling TargetFueling

OverOver

UnderUnder

Fuel Dispersion Control: Injection QuantityFuel Dispersion Control: Injection Quantity

0.60.6

0.80.8

1.01.0

1.21.2

1.41.4

6565 7070 7575 8080 8585 9090 9595

Time (s)Time (s)

Control OffControl OffControl OnControl On

Closed-Loop ControlClosed-Loop ControlOpen Loop ControlOpen Loop Control

InIn-- c

ylin

der p

ress

ure

(bar

)cy

linde

r pre

ssur

e (b

ar)

Combustion StabilityCombustion Stability

UnstableUnstable 5050

4545

00 1010 2020 3030 4040 5050 6060--1010--3030--4040--5050--6060 --2020

Constant injection timing

combustioncombustion4040

(without(without3535closed loopclosed loop3030

control)control)2525

2020

PremixedPremixed

1515 1515

1010 1010

55 55

Inje

ctio

nIn

ject

ion

(A)

(A)

00 00

Example, measured at Crank AngleCrank Angle 1500 rpm, 4 bar BMEP

InIn-- c

ylin

der p

ress

ure

(bar

)cy

linde

r pre

ssur

e (b

ar)

Closed Loop CombustionClosed Loop Combustion

StableStable 5050

4545

(with closed(with closed

00 1010 2020 3030 4040 5050 6060--1010--3030--4040--5050--6060 --2020

Variable injection timing

combustioncombustion4040

3535loop control)loop control)3030

2525

2020

PremixedPremixed

1515 1515

1010 1010

55 55

Inje

ctio

nIn

ject

ion

(A)

(A)

00 00

Example, measured at Crank AngleCrank Angle 1500 rpm, 4 bar BMEP

NOXNO Reduction in MVEG CycleX Reduction in MVEG Cycle

ConventionalConventionalConventional PremixedPremixedPremixed

4040

00

00 4040 8080 120120 160160 200200

ECE Cycle (warm)

CombustionCombustionCombustion combustion (PCCI)combustion (PCCI)combustion (PCCI)

TimeTime

Veh

icle

Spe

edV

ehic

le S

peed

N

ON

OXX

(k

m/h

)(k

m/h

)E

mis

sion

Em

issi

on

Typical Operating “Windows” Aged Catalyst Typical Operating “Windows”Aged Catalyst

00

2020

4040

6060

8080

100100

00 100100 200200 300300 400400 500500 600600Catalyst Operating Temperature (degrees C)Catalyst Operating Temperature (degrees C)

US06 & HDD Catalyst Temps

Requirements of FTP, US06 & DPF RegenerationRequirements of FTP, US06 & DPF Regeneration

Improved SCR

Catalyst

DPF/DeSOX RegenCatalyst Temps

NO

X C

o nve

rsio

n E

ffici

ency

(%)

NO

XC

o nve

rsio

nE

ffici

ency

(%)

SCR Effective Range

SCR EffectiveRange

LDD FTP Catalyst Temps

LNT Range LNT

Range

Then, Now & The Future… Emissions Reduction Technologies versus Cost Then, Now & The Future…Emissions Reduction Technologies versus Cost

Summary Fuels & Advanced Propulsion Strategy SummaryFuels & Advanced Propulsion Strategy� Transportation is a growth industry

� Vehicle production is increasing Globally

� Transportation Sector is highly dependent upon fossil fuels

� A diverse energy strategy is required for both energy security & competitive reasons

� There is no single silver bullet technology

� Successful Energy & Advanced Propulsion Strategies must be tightly integrated

� Transportation is a growth industry

� Vehicle production is increasing Globally

� Transportation Sector is highly dependent upon fossil fuels

� A diverse energy strategy is required for both energy security & competitive reasons

� There is no single silver bullet technology

� Successful Energy & AdvancedPropulsion Strategies mustbe tightly integrated

SummarySummaryAdvanced Propulsion SolutionsAdvanced Propulsion Solutions�� Portfolio approach is required for advanced powertrainPortfolio approach is required for advanced powertrain

strategiesstrategies–– Market, vehicle, & customM er requirements influencearket, vehicle, & customer requirements influence

powertrain usagepowertrain usage�� Diesel engines are critical to GM’s global product portfolioDiesel engines are critical to GM’s global product portfolio�� Emission regulations, fuel price, taxation based on engineEmission regulations, fuel price, taxation based on engine

displacement and fuel consumption largely dictate marketsdisplacement and fuel consumption largely dictate markets where diesels are popular todaywhere diesels are popular today

–– Voluntary 140 g/km CO2 commitmentVoluntary 140 g/km CO2 commitmentis a European driver

– Moving toward 120 g/km CO2 requirement

is a European driver– Moving toward 120 g/km

CO2 requirement

SummarySummaryTechnology Driven TrendsTechnology Driven Trends�� Diesel technological advancements over past 15Diesel technological advancements over past 15

years radically changed public perception of dieselsyears radically changed public perception of diesels–– High performance (torque)High performance (torque)–– Fun to driveFun to drive– Re– R fef inen dedi –– Significant penetration in European luxurySignificant penetration in European luxury

vehicle segmentsvehicle segments

�� Must reMust r tain fuel economy advantages whileetain fuel economy advantages whilemeeting new emissions standardsmeeting new emissions standards

�� Diesel must overcomeDiesel must overcomecost disadvantagescost disadvantages

SummarySummaryMarket Factors in North AmericaMarket Factors in North America�� GM continues to apply North American diesel enginesGM continues to apply North American diesel engines

where they maximize customer benefits:where they maximize customer benefits:–– Large vehiclesLarge vehicles–– Towing & hauling utility applicationsTowing & hauling utility applications

�� U.S. market, with its larger vehicles, will benefit from dieselU.S. market, with its larger vehicles, will benefit from diesel technology introductiontechnology introduction

�� Growing large truck diesel market share implieGrowing large truck diesel ma s improvedrket share implies improved U.S. consumer acceptance of diesel enginesU.S. consumer acceptance of diesel engines

�� Must address North American NOMust address North Am Xerican NOXstandards (one sixth that of Europe)standards (one sixth that of Europe)at an acceptat an accep able costtable cost